Category Archives: Customer Experience

by Jennifer Bosavage

Attracting and retaining the elusive Millennial shopper

 

 

Loyal customers — the Holy Grail for retailers.

Repeat shoppers are a source of recurring revenue. Smart businesspeople know that success lies in cultivating loyalty, and that means more than creating programs that simply collect customer information.

Today’s educated customers understand loyalty programs are often of more value to retailers than to customers.

Millennials in particular are sensitive to that value proposition, and retailers are starting to serve up programs targeted toward the specific desires of this demographic.

A quarter of millennials and 19% of Gen Xers like to shop with family and friends. It’s a social activity that’s enjoyed at a brick-and-mortar storefront.

But, while Gen Xers value the relationship with a store, Millennials value experience and don’t have the same brand loyalty as the older generation.

It’s easier to get a millennial to try a competing brand, so it’s more difficult to retain millennials as customers.

Retailers have to work at providing customers perceived value consistently to earn their loyalty.

3 things Millennials look for:

 

1. Technological “wins”

 
How does a retailer make it easy for customers?

Millennials are dependent on their phones; 84% of them in a recent study said their mobile devices were the most important thing in their lives.

Retailers can use that knowledge to their benefit by, for example, offering mobile apps that are easy-to-use and relevant.

Many say that shopping is easier through an app than through a web site; by offering a digital experience that reduces purchasing friction and makes shopping easier, a brand can improve its relationship with millennials.

 

2. Shared value system

 

What matters to a brand, matters to Millennials.

For example, Patagonia has supported grassroots activists working to find solutions to the environmental crisis.

Shake Shack’s ethos is “We stand for something good,” which is reflected in its carefully sourced premium ingredients from like-minded purveyors as well as in its community support.

Customers feel good purchasing from companies that align with their world views.

 

3. Personalization

 
Yes, for customers, it’s all about “me.”

That doesn’t mean obsequious associates greeting customers they don’t personally know by their first name or creepily sending birthday cards to clients they’ve barely served.

Rather, it means positioning the company in a way that feels customized.

That includes having Instagram-worthy products, immediate customer service response and marketing that focuses on word-of-mouth.

Influencers — high-profile customers whose style is “gospel” — can be more powerful brand advocates than any type of advertising.

But it’s not all about celebrity: For example, Carter’s apparel encourages Millennial parents who want to share photos of their Carter’s-clad babies to use its hashtag #lovecarters.

Retailers can have paying customers, or they can have loyal customers.

High quality products and experiences encourage loyalty in Millennials, who tend to be more easily swayed by special promotions and lower cost than previous generations.

However, loyalty can be earned: Retailers with compelling brand stories and experiences that regularly exceed expectations are positioning themselves to welcome the elusive repeat millennial customer.

by Jennifer Bosavage

Gesture recognition helps retailers gauge shoppers’ real interest

 

 

Artificial intelligence can help even the fussiest customer find just the right product, in a fraction of the time it would take without any technological assistance.

While AI has been used in various businesses, including retail, to improve efficiencies, the technology has also been employed to help stores improve the customer experience by providing more personalized service.

Through advanced gesture recognition, retailers can determine the popularity of an item by analyzing shoppers’ facial and hand gestures.

Software analyzes the way shoppers react to a certain item and determines whether the item is a potential sales buster — or a dud.

Just as an online recommendation engine analyzes a shopper’s movement within a site, gesture recognition software “learns” how an item affects a shopper, and can assist the retailer in finding an item that is perfect for a particular user.

 

Understanding shopping patterns

 
The ability to know what merchandise has been viewed and ultimately rejected is crucial if traditional retailers want to compete against the likes of Amazon.

Digitally native retailers understand customers’ purchase and shopping habits, because their machine learning models see all the data.

Brick and mortar retailers are far behind in understanding customers’ shopping patterns.

Gesture recognition can arm retailers with predictive power.

By analyzing customer data created by interpreting human gestures using mathematical algorithms, retailers can discover which customers are most likely to buy certain products.

 

Prescriptive intelligence

 
As AI advances, businesses will shift from gathering predictive data to prescriptive intelligence.

Once retailers understand why customers buy a product — or why they do not — the next step is to gather intelligence so marketers can illustrate the reasons why shoppers should buy a product.

 

Sales help

 
AI has the potential to amplify and augment retailers’ creativity, by providing not only necessary data, but also freedom from time-consuming, mundane tasks.

The key for brick and mortars is to employ AI in ways that provide in-store assistance to human retail associates.

For example, AI that is integrated into inventory systems can quickly and accurately answer repetitive questions such as stock requests, store hours and directions.

Sales associates can then focus on helping and closing deals with customers.

Such tasks can accumulate and chip away at salespeople’s time, leaving them little time to create customer relationships.

Gesture recognition is no different in terms of its potential to enhance customer service.

Salespeople receive accurate insights quickly, providing them with the opportunity to react appropriately.

“AI assistants” can help provide associates freedom from mundane, routine tasks so associates can work on improving personalized customer experiences.

By making appointments, sifting through and prioritizing email and scheduling various tasks, an AI assistant allows the retail associate to shine in pursuit of customer satisfaction.

by Jennifer Bosavage

DIY retail: The self-service CX debate

 

 

Oh, that elusive “seamless” customer experience.

So many retailers are on the hunt for this.

Often, they look to modern self-service solutions for help.

But the totally automated experience is likely to seldom please every shopper.

And while self-service can be part of the solution, many retailers have learned that customers do not always want or prefer the do-it-yourself model.

 

Reinvesting self-service savings

 

Self-service technology can substantially lower front-line staffing costs.

Shoppers identify Amazon as coming from self-service roots, and consequently do not expect much personal attention at the Amazon Go grocery stores.

But those costs can be reinvested in the business, either in more technology to improve service or product selection, or by further boosting efficiency by training former cashiers and having them function as associates in other service-dominant areas.

Moving some of the customer experience toward automation can help increase the number of customer touchpoints — thereby increasing revenue of accessories and other items.

Adding an Amazon Go option of fast shopping using an app and sensors might also provide exceptional experience.

 

Different needs for different occasions

 

From the customers’ view, a seamless experience can differ, and depends upon a number of factors.

One factor is shoppers’ goals. Those can change daily.

Not all customers always want to check out the same way, every time.

Someone who is in a rush one day might need assistance during another visit.

Grabbing a snack at a convenience store may be deemed “frictionless” if selection was good and service speedy.

But when selecting shoes at a department store, a high level of personal attention may be desired to ensure a “frictionless” experience.

Sometimes more associate help, rather than less, can provide a smoother transaction.

However, traditional brick and mortars need to provide customer service in the most valuable ways, which might not be at the cash register, but on the floor and in the aisles instead.

 

Best of both worlds

 
Providing cashiers as well as self-service not only lets customer choose how they pay, but also frees up some associates — who might otherwise be manning a till — to assist customers needing help.

The best experience is the one that seems personally tailored on an as-needed basis, rather than one that is designed to fit everyone, all the time.

 

 

by Jennifer Bosavage

Omnichannel: The “new” brick & mortar concept

 

 

The face of Main Street stores has changed significantly during the last 20 years.

Bookstores have been replaced by nail salons, clothing shops are now restaurants and flower shops have made way for pet groomers.

Those are the types of services you can’t buy online, and they’re finding brick-and-mortar success.

They are taking back Main Street, breathing life back into the vacant store fronts.

And adding to this new look for downtown are traditional retailers that are using omnichannel to open successful businesses.

 

VIP Click and Collect

 

Take Nordstrom.

The venerable, high-fashion store has debuted “Nordstrom Local.”

Nordstrom Local doesn’t need a huge footprint, and doesn’t carry much inventory.

But it’s a way for shoppers to buy online, pick up in store but also enjoy other amenities that are afforded the VIP shopper.

Today’s fashionistas often order online, motivated by styles presented on social networking sites such as Instagram.

A customer places her order online, then heads to Nordstrom Local to pick up her merchandise instead of taking advantage of free shipping.

Why? To enjoy a manicure while sipping a smoothie and getting the inside scoop on the season’s hottest collection from the friendly, professional associate.

Sure, curbside pickup is a popular option for those on-the-go, but those pedicure stations also have their place.

Those are the competitive differences that will make Nordstrom’s top-of-mind for their next purchases.

It’s Click & Collect, taken to new heights. It’s that type of something extra that drive customers into the store.

This is the next level of omnichannel, in which the channel used for purchase is irrelevant.

 

Compare that to Amazon 4-Star

 

These days, fewer clothing stores have a presence on Main Street, with the exception of pricey boutiques that offer unique products unlikely to be found on Amazon.

Conversely, Amazon 4-Star carries a curated selection of product that caters to a local area.

This is almost the exact opposite of Nordstrom’s model, yet it is also very similar.

Both retailers are trying to cultivate a customer base that enjoys shopping online, but is missing human interaction.

While Amazon attempts to capture “discovery” shoppers, Nordstrom targets the efficient-with-benefits shopper.

And both are offering their clientele an experience tailored to their interests, which align with the shoppers in that demographic.

 

A personalized approach

 

Retailers today need to entice shoppers out of their homes and into the stores.

Just a few years ago, brick and mortar were written off as a dying breed, suitable only for “showrooming.”

Slowly but surely, brick and mortar shops are finding secure footing back on Main Street.

Not all the old names will make it back, and some are gone for good, because they just couldn’t reinvent themselves or their customer experience fast enough.

But physical locations are a vital part of the omnichannel, offering a more personalized approach than any pure ecommerce retailer ever could.

Just ask Amazon.